Executive Summary
Product Terms changes include new Extended Term licensing cross program, new Exchange and Skype Server Subscription Editions, Azure AI Foundry grounding clause, Unattended Bot support for Windows 365, and expanded Defender for Experts licensing paths.
Dynamics 365 F&O license enforcement begins November 1, 2025, with warnings starting September.
Extended Security Updates (ESU) for Exchange 2016/2019 now available from August 1 to support migrations to Subscription Edition, ending April 14, 2026.
Windows 10 ESU options launching September, with pricing or coverage options depending on deployment channel.
Subscription Editions (SE) for Exchange and Skype Server now generally available; standalone on prem server products saw a 10% price rise as of July 1.
Product Terms & Licensing Landscape
- Extended Term standardised across programs
Online Services now include a 30‑day grace period after expiration. Services may auto‑extend month‑to‑month (current monthly rate + 3%) unless customers opt out. Once disabled, reactivate is not possible, but data remains available for 90 days. Previously available only under EA, now extended cross‑program. - New Subscription Editions (SE)
Exchange Server and Skype for Business Server SE editions are now listed and require Software Assurance or equivalent cloud subscription rights. - Exchange 2016/2019 ESU program launched
A limited 6‑month Extended Security Update program begins August 1 for Exchange 2016 CU23 and 2019 CU14/CU15 customers, ending April 14, 2026. ESUs delivered privately through account teams. - Windows 10 ESU availability
Starting September 1 via Volume Licensing:- CSP/EA: Priced from $61 USD per device for Year One (doubling each year).
- Windows 365 / Azure VMs: ESU included at no extra cost.
- Azure changes
A new “grounding with Bing Search” clause in Azure AI Foundry Agent Service—real‑time web data use billed as first‑party consumption. - Windows 365 Unattended Bot licensing
Now included under M365 Product Terms as an option. - Microsoft Defender for Experts
Added to EES/EA/EAS prerequisite tables, and licensing now available via Azure Service, increasing flexibility. - CAL & ML Equivalency Table updated
Reflects new SE licenses and helps map equivalencies between on‑prem and online services.
Dynamics 365 F&O Licensing Enforcement
Starting Sept 1, 2025, licensing warnings begin; Nov 1, 2025, unlicensed users will be blocked. Action needed to assess assignments via available tools.
On-Premises Server Pricing & Licensing
- SE products now GA—require SA or cloud subscription.
- Server price increases: +10% on Exchange, SharePoint, Skype Server as of July 1.
Joseph Lobo – Consultant
Consultant at Certero with deep expertise in Software Asset Management (SAM) and IT asset governance. Joe advises clients on navigating high-stakes licensing environments, offering detailed insights into deployment reporting formats, processor capacity definitions, and compliance contracts. His guidance helps organizations align governance strategies with modern SaaS and cloud complexities, transforming compliance risk into strategic advantage.
